The scheme is implemented by SME Digital in collaboration with the Ministry of Fisheries, Agriculture and Ocean Resources, the Ministry of Finance and Public Enterprises, funded by the Islamic Development Bank (IsDB) and the Lives and Livelihoods Fund (LLF).
SME Digital
The financing limit under the RSW Financing Scheme, introduced to support the development and long-term sustainability of the Maldivian fisheries industry, has been increased to MVR 4 million.
The scheme is implemented by SME Digital in collaboration with the Ministry of Fisheries, Agriculture and Ocean Resources, the Ministry of Finance and Public Enterprises, funded by the Islamic Development Bank (IsDB) and the Lives and Livelihoods Fund (LLF).
Previously, the financing facility covered the installation of RSW systems, generator sets (gensets), and solar panels on fishing vessels. With the increased financing limit, the scope of the scheme has now been expanded to include the installation and replacement of vessel engines. This enhancement will provide fishermen with greater access to financing to upgrade their vessels, improve operational efficiency, and expand their fishing activities.
The RSW Financing Scheme aims to reduce the costs associated with purchasing ice and provide fishermen with modern onboard equipment to preserve the freshness and quality of their catch. By minimising post-harvest losses and improving fish preservation, the scheme supports increased productivity, reduced operational costs, and greater profitability for fishermen. The latest enhancement also creates further opportunities for vessel owners to modernise their operations and strengthen the overall competitiveness of the Maldivian fisheries sector.
Under the revised scheme, fishermen can access up to MVR 4 million in collateral-free financing at an annual profit rate of 6%, with a repayment period of up to 10 years, including a 6-month grace period.
In relation to this project, the Minister of Fisheries, Agriculture and Ocean Resources, Honourable Ahmed Shiyam, highlighted that one of the most significant challenges faced by Maldivian fishers is the high cost and considerable time involved in procuring ice for fishing operations.
The Minister emphasised that the introduction of onboard Refrigerated Seawater (RSW) systems will provide a sustainable and cost-effective solution to this longstanding challenge by significantly reducing dependence on land-based ice plants. This advancement will also help minimise fuel expenses and valuable time spent travelling to procure ice, thereby improving operational efficiency.
Furthermore, the Minister stated that these modernisation efforts are expected to enhance the profitability of fishing operations, improve the livelihoods of fishers, and contribute to a transformative shift in the Maldivian fisheries sector, paving the way for a more efficient, economically sustainable, and prosperous fishing industry.
This enhancement presents a significant opportunity for vessel owners and fishermen across the Maldives to modernise their operations and increase their earnings. Through collateral-free financing, fishermen will be able to equip their vessels with modern technology that helps preserve the freshness and quality of their catch while improving operational efficiency.
This financing is an investment in the long-term economic viability of the fisheries sector. By reducing operational costs, improving productivity, and creating opportunities for value addition, we aim to support sustainable growth in the industry. The benefits of this initiative will extend beyond fishermen to their families, local businesses, and island economies across the Maldives.
The expansion of the RSW Financing Scheme reflects ongoing efforts to improve access to affordable financing and promote the adoption of modern technology in the fisheries sector. By enabling fishermen to upgrade their vessels and enhance their fishing operations, the initiative is expected to contribute to the long-term sustainability and economic development of the Maldivian fisheries industry.
Applications for RSW financing can be submitted through the SME Portal, accessible via SME Digital's official website at www.smedigital.mv.
